It is now cheaper to buy a house, flat or bungalow than to rent property in most of the UK, research has revealed.

Property website Zoopla.co.uk found that renting costs an average of 10.5% more than paying interest on a mortgage for the same type of property.

Low interest rates and falling house prices mean people are better off buying a two-bedroom flat than renting one in eight out of ten towns and cities in Great Britain.

Rents exceeded the cost of having a mortgage by more than 20% in 14 of the largest towns and cities in Great Britain.

Milton Keynes recorded the biggest difference. There, it costs 42% more to rent a home rather than buy one, with rents on a two-bedroom flat averaging £785 a month, while an interest-only mortgage on a similar property would be £554.

However, mortgage supply issues mean many people simply cannot borrow sufficient money to buy their own home - and this is behind the increased demand for rented accommodation. Also these figures do not allow for the mortgage deposits that are essential in the current market.